Question

Following is the Trial Balance of Rana and Raju as on 31^st March , 2018 .

Prepare the Profit and Loss Account and Profit and Loss Appropriation Account for the year ended 31^st March, 2018 and the Balance Sheet of the Firm as on that Date, after taking into consideration the following Additional Information : 

(i) Depreciate Machinery @ 10 % Per Annum and Furniture @ 20 % Per Annum . 

(ii) Partners will get Interest on Capital @ 5 % Per Annum . 

(iii) Raju is Entitled to a Salary of Rs 1,800 Per Annum . 

(iv) The Profit Sharing Ratio between Rana and Raju was 3 : 2 . 

Answer 1

Depreciation 

Machinery = Rs 10,000 @ 10 % Per Annum = Rs 1,000 

Furniture = Rs 20,860 @ 20 % Per Annum = Rs 4,172

                            Profit and Loss Account

Profit and Loss Appropriation Account